While a large body of social psychological research has shed light on the nature of prejudice and how to reduce it, we argue that such work does not address situations of cultural or religious outgroup beliefs and practices that are considered incompatible with one's own. The present theoretical article contrasts a prejudice‐reduction approach with a toleration‐based approach to consider the differences each have with regard to the attitude object they focus upon, the perceived reasonableness of the attitude, and the behavioral consequences each may lead to. In doing so, we consider the psychological processes involved in whether the negative attitude leads to negative actions. We conclude by arguing that a toleration‐based approach forms an important addition to the psychological thinking about cultural diversity and intergroup relations. Collectively, the present work makes a novel contribution to the social psychological literature by stimulating theory development and raising novel questions for empirical research.